Table of ContentsPolitical FactorsEconomic FactorsSocial FactorsTechnological FactorsEnvironmental FactorsLegal FactorsFast food is a type of food prepared quickly and served as takeaway or a quick meal usually involving the reheating of food cooked. It was first mentioned in Britain in 1860 with the first fish and chip shops. In the 1950s, drive-thru restaurants were first popularized in the United States. Additionally, the National Institute of Health defines fast foods as highly saturated in salt, sugar, and calories and considered alternatives to home-cooked meals. PESTEL analysis is a framework used to study macro-environmental factors that impact organizational performance (Cadle, Paul & Turner, 2010). The term PESTEL is an acronym meaning Political, Economic, Social, Technology, Environment and Legal. In 1967, Francis Aguilar, a professor at Harvard, founded the term PEST, which he could further use independently or in combination with Porter's five forces and SWOT analysis (Arline, 2014). A good understanding of external factors allows businesses to identify areas of opportunity and threat. This article aims to evaluate the PESTEL factors that have had a significant impact on the fast food industry in the United States and highlight likely future opportunities that the industry could capitalize on. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get the original essay The United States is a well-known giant in the fast food industry, as in 2015 it recorded a d Huge $200 billion business industry. There are over 200,000 fast food restaurants in which it is estimated that over 50 million Americans eat a meal at one of these restaurants daily (Fast Food Industry Analysis 2016 - Cost & Trends, 2016). Fast food brands in America are classified into hamburger restaurants, sandwich shops, pizzerias and cafes. Some of these brands include Jack in the Box, Arby's, Domino's Pizza, KFC, Pizza Hut, Burger King, Taco Bell, Subway, and McDonald's (McConnell & Bhasin, 2012). The industry plays an invaluable role in employing over 4 billion people and thereby helping to reduce the unemployment rate in the country. In particular, franchised restaurants created a total of 200,000 jobs in the sector in 2015 (Fast Food Industry Analysis 2016 - Cost & Trends, 2016). A PESTEL assessment of the fast food industry in the United States involves the following: Political Factors Political factors refer to the degree of intervention of a country's government in the economy. Other aspects such as political instability or foreign market instability, government policy, tax policy, labor law, foreign trade policy, trade restrictions and environmental laws are also taken into account and must be respected by companies. Globally, fast food brands should ensure they comply with packaging regulations and food hygiene and quality specifications to protect public health. However, in the United States of America, despite numerous published reports that fast food is the cause of childhood obesity, there is little to no government intervention (Fast Food Industry PESTEL Analysis 2016 - Cheshnotes , 2016). However, European counterparts have launched several initiatives aimed at reducing the salt content offood following a report showing a link between salt consumption and heart disease in the UK. Additionally, in Germany, fast food restaurants are required to specify certain nutritional factors for each meal served, such as the levels of calories, sugar, saturated or unsaturated fat and salt levels, in response to an initiative to food labeling. The reason for the self-regulatory nature of the food industry is attributed to two factors. The American political system uses laissez-faire economics and the aggressive, concentrated nature of the food industry in the capital. McDonald's plays a vital role and, along with other fast food restaurants, trans fat content has not been enacted as a regulation. Economic Factors Economic factors influence the way an organization does business and contribute to the amount of profit to be made. Interest rates, disposable income of businesses and consumers, inflation, exchange rates and economic growth are key concepts that are carefully reviewed. The economic recession that occurred was very disruptive to most industries as it resulted in a drastic reduction in profits and consumer demand for goods and services (Kliman, 2012). Many people prefer to eat at a fast food restaurant rather than having a meal at a traditional restaurant. However, at the height of the recession crisis in 2008, demand for McDonald's products neither increased nor decreased compared to other markets for the same product in Japan and France where demand increased. However, the fast food industry has recognized that this does not make it recession-proof. So, in an effort to increase sales, a variety of low-cost products were introduced into the menus. In addition, customer service has been remarkably redefined to attract and retain old and new customers. Social factors Sociocultural factors reflect the shared attitudes and beliefs of the population. Some of the areas of greatest concern include health awareness, age distribution, professional attitudes and population growth. In particular, the perception of health and lifestyle has increased thanks to media intervention. Additionally, the fast food industry has been condemned for the high number of childhood obesity. McDonald's has experienced negative public opinion from its consumers because it contributes significantly to health problems. In response to this, the super size option at McDonald's was removed and milk, water, fruit smoothies, salads and fruit were added to the menus (Pompper and Higgins, 2007). Additionally, most fast food companies, in an effort to retain their users and reduce their negative public image, display the nutritional content of meals and also serve low-calorie foods. Technological Factors The use of the Internet has opened up many opportunities for high-impact and low-impact marketing. -cost of products and services for businesses and industries. In the fast food industry, social media and online marketing have massively supported businesses and resulted in increased revenue and reduced expenses. Technology has become indispensable in the fast food industry as innovative methods are developed to gather customer feedback on products. Additionally, some of the technological factors affecting Burger King include access to automation technologies that will help improve efficiency.